MIRA INFORM REPORT
|
Report Date : |
25.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
FERRO SCRAP NIGAM LIMITED |
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Registered
Office : |
FSNL Bhawan ,Equipment Chowk, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
12.09.1989 |
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Com. Reg. No.: |
53-005468 |
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Capital
Investment / Paid-up Capital : |
Rs.20.000 Millions |
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CIN No.: [Company Identification
No.] |
U27102CT1989GOI005468 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
BPLF00152F |
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PAN No.: [Permanent Account No.] |
AAACF7443D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Subject is engaged in the business of Scrap Recovery and
Allied Jobs in various Steel Plants. |
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No. of Employees
: |
1051 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5600000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of MSTC Limited. It is an established company
having satisfactory track record. Profitability of the company seems to be fair. General financial
position of the company seems to be sound and healthy. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. In view of strong holding, the company can be considered for business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue before
the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c
(Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been
launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
FSNL Bhawan ,Equipment Chowk, Central Avenue, Bhilai,
District Durg – 490001, Chhattisgarh, India
|
|
Tel. No.: |
91-788-2222474/2475 |
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Fax No.: |
91-788-2220423/3884 |
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E-Mail : |
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|
Website : |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. S. K. Tripathi |
|
Designation : |
Chairman (w.e.f. 19.04.2012) and Additional Charge of Managing Director (w.e.f. 22.08.2012 afternoon) |
|
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|
Name : |
Mr. Antony Chacko |
|
Designation : |
Managing Director (upto 22.08.2012 forenoon) |
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|
Name : |
Mr. D. B. Singh |
|
Designation : |
Director (from 09.09.2011to 12.12.2012) |
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|
Name : |
Mr. S. P. Bhardwaj |
|
Designation : |
Director (w.e.f. 13.12.2012) |
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|
Name : |
Mr. B. B. Singh |
|
Designation : |
Director |
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|
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|
Name : |
Mr. R. Ramaraju |
|
Designation : |
Director (from 17.01.2012 to 27.05.2013) |
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|
Name : |
Mr. G. S. Chugh |
|
Designation : |
Director (from13.02.2012 to 12.08.2012) |
KEY EXECUTIVES
|
Name : |
Aditya Prakash Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
As on 31.03.2013
|
Names of Shareholders |
|
No. of Shares |
|
MSTC Limited |
|
20000 |
|
Total |
|
20000 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of Scrap Recovery and Allied
Jobs in various Steel Plants. |
GENERAL INFORMATION
|
No. of Employees : |
1051 (Approximately) |
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Bankers : |
·
State Bank of India ·
Bank of India ·
Indian Bank ·
Andhra Bank ·
Bank of Baroda ·
Punjab National Bank ·
UCO Bank ·
Corporation Bank |
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Facilities : |
(The above loans are secured by pledge on fixed deposits of the company held with respective bankers. The maturity period of deposit is less than one year as on the balance sheet date) |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name : |
Rajendra Prasad Chartered Accountants |
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|
|
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Holding
Company : |
MSTC Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000 |
Equity Shares |
Rs.1000/- each |
Rs.20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000 |
Equity Shares |
Rs.1000/- each |
Rs.20.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
20.000 |
20.000 |
20.000 |
|
(b) Reserves & Surplus |
1378.119 |
1363.162 |
1354.063 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
1398.119 |
1383.162 |
1374.063 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
29.711 |
25.481 |
23.762 |
|
(d) long-term provisions |
283.628 |
235.917 |
190.692 |
|
Total Non-current Liabilities (3) |
313.339 |
261.398 |
214.454 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
87.508 |
268.326 |
(63.365) |
|
(b) Trade payables |
183.986 |
221.518 |
272.578 |
|
(c) Other current
liabilities |
155.294 |
154.764 |
124.469 |
|
(d) Short-term provisions |
93.941 |
48.323 |
74.443 |
|
Total Current Liabilities (4) |
520.729 |
692.931 |
408.125 |
|
|
|
|
|
|
TOTAL |
2232.187 |
2337.491 |
1996.642 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
527.101 |
557.749 |
543.527 |
|
(ii) Intangible Assets |
0.930 |
0.578 |
0.519 |
|
(iii) Capital
work-in-progress |
17.165 |
10.794 |
32.331 |
|
(iv)
Intangible assets under development |
6.725 |
6.725 |
6.125 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
42.799 |
30.964 |
12.635 |
|
(d) Long-term Loan and Advances |
82.799 |
68.164 |
43.450 |
|
(e) Other Non-current assets |
469.176 |
72.970 |
31.239 |
|
Total Non-Current Assets |
1146.695 |
747.944 |
669.826 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
43.804 |
52.989 |
57.449 |
|
(c) Trade receivables |
159.556 |
198.237 |
148.954 |
|
(d) Cash and cash
equivalents |
559.656 |
952.908 |
835.630 |
|
(e) Short-term loans and advances |
25.011 |
18.471 |
23.859 |
|
(f) Other current assets |
297.465 |
366.942 |
260.924 |
|
Total Current Assets |
1085.492 |
1589.547 |
1326.816 |
|
|
|
|
|
|
TOTAL |
2232.187 |
2337.491 |
1996.642 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1867.888 |
1646.283 |
1607.844 |
|
|
|
Other Income |
110.257 |
98.602 |
76.843 |
|
|
|
TOTAL (A) |
1978.145 |
1744.885 |
1684.687 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
271.888 |
244.004 |
270.330 |
|
|
|
Cost of service though contractors |
0.000 |
0.000 |
480.659 |
|
|
|
Employee benefits expense |
750.731 |
654.974 |
614.280 |
|
|
|
Other expenses |
809.261 |
678.242 |
186.521 |
|
|
|
Exceptional items |
0.547 |
30.582 |
(0.633) |
|
|
|
Prior Period Income/(Expense) |
(1.208) |
(0.057) |
(1.523) |
|
|
|
TOTAL (B) |
1831.219 |
1607.745 |
1549.634 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
146.926 |
137.140 |
135.053 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
15.084 |
9.010 |
1.794 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
131.842 |
128.130 |
133.259 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
106.586 |
107.840 |
115.458 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
25.256 |
20.290 |
17.801 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5.650 |
6.561 |
5.831 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
19.606 |
13.749 |
11.970 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
0.101 |
0.001 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed
Dividends |
4.000 |
4.000 |
NA |
|
|
|
Dividend
Distribution Tax |
0.649 |
0.649 |
NA |
|
|
|
Transfer to
General Reserve |
15.000 |
9.000 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
0.058 |
0.101 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
980.31 |
687.43 |
598.47 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.99 |
0.79 |
0.71 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.35 |
1.23 |
1.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.17 |
0.89 |
0.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
0.01 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.06 |
0.19 |
(0.05) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.08 |
2.29 |
3.25 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Detail |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
CORPORATE
INFORMATION
Subject is a joint
sector company, incorporated on 28-3-1979. Presently it is "Mini Ratna II
PSU" (IMS Certified) a Government of India company under Ministry of
Steel. It is a wholly owned subsidiary of MSTC Limited. FSNL undertakes the job
of recovery and processing of scrap from slag and refuse generated during iron
and steel making at Steel Plants. Ferro Scrap Nigam Limited offers specialized
services for Dig and haul of Blast Furnaces and Steel Melting Shop slag at slag
yards, Processing of iron and steel skulls, mill rejects and maintenance scrap
as per customer's requirement. FSNL also offers scarping of slabs, crushing and
screening of LD slag to be used in sinter plant, blast furnace and rail
ballast. It removes sludge and ash deposit from sludge compartments and ash ponds.
PERFORMANCE HIGHLIGHTS
The Company
maintained well in physical targets in all key operational areas despite
obstacles like nonrenewal of long term agreements and closure of operation at
IIL, Dolvi, from March’ 13. FSNL achieved a dispatch of 2.326 Millions tonnes
of scrap and 4.623 Millions tonnes of slag haulage. The physical performance
has been achieved despite reduction in input of scrap from current arisals and
also from old dumps. We have also opened a new Unit at RWF, Bengaluru and
commenced operations during the financial year 2012-13.This achievement of
scrap and slag was possible by addition of new jobs and liquidating the old
stock in the existing plants. During the year company has earned a revenue of
Rs.13.802 Millions by rendering the services of warehouse management. Such
achievements have been possible due to the excellent work culture, team spirit,
hard work and dedication of all the employees as well as cooperation and
support received from customers.
The technological upgradation
/ modernization in steel making has brought down the generation of scrap in
steel plants and as a result the availability of scrap from slag has gradually
reduced. To improve the growth and profitability, FSNL is exploring opportunity
to secure new jobs.
The total earnings
of the company was Rs.1978.144 Millions including service charges of
Rs.1867.888 Millions as compared to the previous year’s figure of Rs.1744.885
Millions and Rs.1646.283 Millions respectively. The company’s gross margin and
the profit before tax during the year was Rs.146.539 Millions and Rs.25.255
Millions as compared to the previous year’s figure of Rs.136.780 Millions and
Rs.20.290 Millions respectively.
The profitability
of the company has shown improvement of Rs.4.965 Millions inspite of reduction
in the quantity of scrap dispatched due to lesser consumption by the Steel
Plants and loss of Revenue in Dolvi unit due to non-renewal of contracts.
OUTLOOK:
Steel industry in
India has fully integrated with the world economy in the recent years. The
Industry is operating in a very competitive environment. In the above business
environment FSNL is having a very important role as their operation is
integrated with the Steel Plants’ operation in the core areas. FSNL is having a
market share of 60% at present. The steel industry viz. SAIL and RINL, the
major customers of FSNL is poised for growth to reach 30 million ton by
2013-14. FSNL will also grow with the existing customers and expected to add
new customers such as Heavy Industries etc. in the coming years. Company is
expecting more jobs in the area of Warehouse Management and Mining. The company
has a proven ability to face challenges and turn them into strength. The
special feature of FSNL’s operation results in saving of metal loss and energy
and value addition to the waste material.
Financial benefit
to the Steel Plants from recovery of metallics and recycling of slag amounts to
around 6,885 crores per year. Further due to improvement in quality the market
value of metallics has increased substantially which fetch additional revenue
to the Steel Plants.
STATUS OF SCRAP RECOVERY CONTRACTS
SAIL Plants
Long Term Agreements with the following SAIL plants were valid upto
31.03.2013.
a) Rourkela Steel Plant: RSP, SAIL has extended the contract upto
30.06.2013. Request has been made to RSP for further extension of the contract
after 30.06.2013 till the finalization of the MOU.
b) IISCO Steel Plant: ISP has extended the contract till
finalization of the MOU, which will be effective from 01.04.2013.
c) Bhilai Steel Plant: BSP, SAIL has extended the contract upto
30.06.2013. Request has been made to BSP for further extension of the contract
after 30.06.2013 till the finalization of the MOU.
d) Bokaro Steel Plant: BSL, SAIL has extended the contract till
finalization of the new agreement, which will be effective from 01.04.2013.
e) Durgapur Steel Plant: DSP, SAIL has extended the contract till
the finalization of the MOU which will be effective from 01.04.2013.
Visakhapatnam Steel Plant
Agreement has been
signed on 21.08.2012 for the period 01.11.2011 to 31.10.2014.
Neelachal Ispat
Nigam Limited, Duburi
Agreement was
valid upto 12.05.2013. NINL has extended the contract, pending finalization of
the new agreement.
Ispat Industries
Limited, Dolvi
Agreement with IIL
was valid upto 14.03.2013. Action has been taken to wind up the activities.
BHEL, Haridwar
Agreement is valid
upto 31.07.2013. Request has been made to BHEL for extension of the contract.
Rail Wheel
Factory, Bengaluru
Agreement is valid upto 10.09.2013.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90203583 |
22/04/1999 * |
10,000,000.00 |
BANK OF BARODA |
BHILAI,
BHILAI, Chhattisgarh - 490006, INDIA |
- |
|
2 |
80025305 |
22/04/1999 |
40,000,000.00 |
BANK OF BARODA |
BHILAI,
BHILAI, Chhattisgarh - 490006, INDIA |
- |
|
3 |
90207699 |
11/06/1998 * |
60,000,000.00 |
BANK OF INDIA |
BHILAI,
BHILAI, Chhattisgarh - 490006, INDIA |
- |
|
4 |
90202586 |
13/03/1990 |
36,523,141.00 |
STEEL AUTHORITY OF INDIA
LIMITED |
ISPAT
BHAWAN, LODI ROAD, NEW DELHI, Delhi - 110003, INDIA |
- |
FIXED ASSETS:
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
·
Office equipment
·
Computer
software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.99 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.83.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
48 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.